GBP/USD regains some positive traction on Monday amid the emergence of fresh USD selling.A further decline in the US Treasury bond yields is seen as a key factor weighing on the buck.Bets for more Fed rate hikes, a weaker risk tone could limit the USD losses and cap the major.
The GBP/USD pair attracts some dip-buying in the vicinity of the 1.2400 mark on Monday and touches a fresh daily high during the early North American session. The pair is currently placed around the 1.2450 region, up nearly 0.20% for the day, though the intraday uptick lacks bullish conviction.
The US Dollar (USD) remains under some selling pressure for the third successive day and drops to a one-week low amid the ongoing downfall in the US Treasury bond yields. This, in turn, is seen as a key factor lending some support to the GBP/USD pair amid rising bets for an additional interest rate hike by the Bank of England (BoE) in May. In fact, the markets now see over a 90% chance of a 25-bps rate hike in May. The bets were lifted by last week’s release of stronger UK wage growth data and the stubbornly high inflation figures.
The Federal Reserve (Fed) is also expected to continue raising interest rates to curb inflation. Moreover, the markets have fully priced in a 25 bps lift-off at the next FOMC policy meeting in May and the Fed funds future indicates another rate hike in June. The expectations were reaffirmed by the recent hawkish comments by several Fed officials and the incoming positive US macro data, which suggested that the world’s largest economy remained resilient and supports prospects for further policy tightening by the US central bank.
In the absence of any relevant market-moving economic releases on Monday, the aforementioned mixed fundamental backdrop might hold back traders from placing aggressive bullish bets around the GBP/USD pair. Traders also seem reluctant ahead of this week’s important US macro data, starting with the Conference Board’s Consumer Confidence Index on Tuesday. This will be followed by the US Durable Goods Orders, the Advance US Q1 GDP print and the Core US PCE Price Index on Wednesday, Thursday and Friday, respectively.
EUR/USD advances toward 1.1050 on renewed USD weakness
EUR/USD has regained its traction and advanced toward 1.1050 area during the American trading hours on Monday. The US Dollar struggles to find demand ahead of this week’s high-tier data releases and allows the pair to continue to stretch higher.
GBP/USD extends rebound beyond 1.2450
After having declined toward 1.2400 in the early European session on Monday, GBP/USD reversed its direction and climbed to a fresh daily high above 1.2450. The renewed selling pressure surrounding the US Dollar despite a mixed opening in Wall Street helps the pair push higher.
Gold rises above $1,980 amid falling US Treasury bond yields
Gold price has gathered recovery momentum and rose above $1,980 in the early American session on Monday. The benchmark 10-year US Treasury bond yield is closing in on 3.5% and losing more than 1% on the day, fueling XAU/USD’s rebound.
Bitcoin price action from 2019 hints what could happen to BTC in 2023
Today we’re going to be taking a quick look at Bitcoin price and how it plays a major role in directing where the markets go. A repeating price fractal hints that the recent retracement could be setting the stage for a massive bull run for cryptocurrencies.
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